MIKE BAXTER
H-16, SITE, KARACHI, 75700, PAKISTAN
Personal Telephone / Fax: (9221) 257-6996
Ref:
LETTER TO EDITOR Date: July 21, 2000REDUCTIO AD ABSURDUM
The government is presently facing formidable problems in steering the country onto the path of economic prosperity. Nearly all the economic policies have shown negative results, reactions, and rejoinders. The industrialists and businessmen have been subject to intense character assassination and it seems that the policy makers have been going all hog in convincing the 140 million people that the country has gone to rot just because the industrial and trade community has been bleeding the country dry. The Survey Forms pronounce in "invisible ink" that the businessmen are liars, tax evaders, and traitors. Thus, they should be punished because they cannot be trusted. Therefore, it is time to go back to the dark ages, bring back rigid bureaucratic controls, but at the same time provide substantial employment opportunities.
The industrialists of Karachi have always carped that they are specially singled out and that they are victims of discrimination, whether in taxes, levies, and duties, whether in infrastructure, or whether in other government largesse, etc. If what they say is true, then they should be put more under the microscopic eye. The Council of Karachi’s Industrial Associations proudly proclaims that it represents over 14,000 Karachi industries in five industrial estates. (SITE Super Highway, West Wharf, and other mini industrial estates are not included yet). Hence, the beginning could be made in these 14,000 units. Here’s how it should be done.
Every industrial unit, whether a giant multi-national or whether a small enterprise, should dedicate one room known as "Government Control Room" in which provisions should be made for the placing of one representative each of the following agencies:
Sales Tax & Excise, Income Tax, Labor Department, EPA, KESC, SSGC, PTCL, KWSB (or SITE Ltd), SESSI, EOBI, Electric Inspector, Boiler Inspector, sensitive intelligence agencies, and NAB. Of course, the government can add more if desired. Thus, over 200,000 persons could be accommodated in just the five industrial estates of Karachi alone. One can only imagine how many jobs could be provided all over the country. Of course, there will be the ballooning cost factor too. This could be offset in two ways. One, the government should introduce "Pakistan Prosperity Surcharge" of one percent on turnover. Secondly, since every industrial movement in the unit would be supervised from the GCR, there will be no revenue leakage, no evasion, no theft, and no undocumented activity. In this way, the government would get billions in added revenue and this would more then justify and pay for the increase in government employees.
Moreover, the government should amend the Trade Organizations Ordinance to facilitate the nomination of one Ministry of Commerce representative to be on full time basis on every Chamber, Association, or Trade Group Managing Committee. The government should also have a GCR in every market so that all undocumented business is checked, monitored, and curbed. The government should also make it mandatory for every consumer to demand a receipt for every purchase. The jewelers, for example, must write down the name, NIC number, address, etc of every consumer that enters the store. At the same time, the government should establish the "Pakistan Prosperity Patrol" whose task would be to raid industrial and trade units without any warrant, without any intimation, and without any excuse. This ‘PPP’ would consist of educated, unemployed youth, and in this way more effective control could be achieved. The personnel of ‘PPP’ would be provided incentives thru a substantial share from the proceeds they unearth.
The net result of all this would ensure large funds for the country’s development, would ensure that IMF and other multi-lateral agencies would consider Pakistan a darling country, would bring about documentation of the economy, and would provide considerable employment to the newcomers in the job market. Of course, the concept of George Orwell’s "Big Brother" would become a reality in Pakistan too. And for sure, most of the industries would close down permanently. But who cares! If industrialization in Pakistan fails, the leaders can continue using the begging bowl and becoming subservient to our foreign masters. Reductio ad absurdum. (To prove the falsity of a proposition by demonstrating that its logical conclusion is absurd).
Sincerely:
MIKE BAXTER